Cryptocurrency Signature Bank was shut down by US regulators following the collapse of SVB and Silvergate.
US authorities shut down New York Signature Bank following the larger Silicon Valley Bank (SVB). This was reported on March 12 by MarketWatch.
It was noted that Signature Bank is popular among owners of cryptocurrencies – it provided services for placing digital assets in customer deposits, but did not invest in cryptocurrencies and did not trade them, and did not accept these as collateral for issuing loans.
According to a statement by the US Department of the Treasury, the Federal Reserve System and the Federal Deposit Insurance Corporation (FDIC), all depositors of financial institutions will receive full compensation.
However, the protection does not extend to certain shareholders and holders of unsecured debt. The management of the bank was removed.
The joint press release from the regulators also said that the Fed will provide banks with additional funding on favorable terms so that they can meet all the requirements of depositors.
It will be recalled that on March 10, the regulator closed Silicon Valley Bank based in California, which is owned by SVB Financial Group and is the 16th largest bank in the United States by assets. His bankruptcy was the largest since the 2008 financial crisis.
It was previously reported that the collapse of a major crypto industry lender Silvergate Capital caused Bitcoin to crash.
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.